News & Analysis

Overnight on Wall Street: Thursday 07/11/19

11월 7, 2019

By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

The rally came to a halt as investors digested the potential delay of the signing of a partial trade. Wall Street ended mixed on reports that the long-awaited trade deal could be delayed until December. It is being suggested that one possible location for the meeting could be London after a NATO summit.

  • Dow Jones Average Industrial ended flat at 27,493.
  • S&P500 finished higher by only 2 points at 3,077.
  • Nasdaq Composite lost 24 points to close at 8,411.

Currency Markets

In the FX market, it was a classic reaction of investors piling into haven assets when news that the partial trade deal may be delayed.

Major currencies were weaker against the US dollar in the European and US session. The safe-haven currencies like the Japanese Yen and Swiss franc were among the best-performing currencies.

The British Pound was the weakest currency as a lack of macroeconomic data and UK political campaigns. However, the downside is limited by the fact that the political polls are indicating a majority for the UK Prime Minister Boris Johson’s Conservative Party.

The GBPUSD pair is, therefore, trading in a tight range as there are still some elements of uncertainties that preventing investors to push the pair more aggressively in a particular direction.

GBPUSD (Hourly Chart)


Source: GO MT4

The British Pound was also among the few in the positive against the US dollar. A stronger-than-expected UK services PMI at 50.0 boosted the Pound, but the election campaign and the renewed strength in the US dollar have capped gains. The GBPUSD pair is currently trading at 1.2883 after rising above the 1.29 level.

Commodities

The oil market was hit by a few bearish news at once:

  • Trade-related headlines were less optimistic.
  • Bloomberg reported that the biggest OPEC+ members are not looking for another production cut.
  • EIA reported an increase of 7.9 million barrels in crude oil inventories in the US.

Oil prices came under modest selling pressure overnight. As of writing, WTI and Brent Crude were trading in the vicinity of $56 and 61 respectively.

UKOUSD and USOUSD (Hourly Chart)


Source: GO MT4

Gold nudged higher on trade-related headlines and a weaker US dollar. There was decent support for the precious metal and buyers pushed the prices above $1,490. The $1,500 psychological level will now be in focus.

XAUUSD (Hourly Chart)


Source: GO MT4

Key upcoming events

Imports, Exports and Trade Balance (Australia)
Industrial Production (Germany)
Eurogroup Meeting, Economic Bulletin and European Commission releases Economic Growth Forecasts (Eurozone)
BoE Quarterly Inflation Report, MPC Vote, Asset Purchase Facility, BoE Minutes, Interest Rate Decision, BoE’s Governor Carney Speech  (UK)
Jobless Claims, and Fed Speech (US)

Friday, 08 November 2019
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
0.2785.90.5630.0660.1900
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
5.333000000

Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs.  Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.

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